FCA says further work necessary despite fall in banking related complaints

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Posted in:Banking and Finance|September 26, 2014 | Join the mailing list


A recent fall in the number of complaints made about banks is ‘not enough’ and ‘work needs to be done’ according to the City regulator, The Financial Conduct Authority (FCA).

In its announcement of 25 September 2014, the FCA warned that financial services companies need to do more to ensure that consumer interests come first. Chris Woolard, the FCA’s director of policy, commented that; “It’s important that firms now get on top of
the issues that are driving complaints. Although it’s encouraging to see the total number of complaints fall, there is clearly further work to be done to ensure that consumer interests come first.”

The total number of complaints made against financial services companies fell by 5% in the first six months of the year, from 2,493,729 in the previous six months to 2,358,732. However, although a 5% reduction is significant, this still amounts to almost 13,000
complaints per day, which fails to convince the FCA that consumers are satisfied with the services provided.

In terms of the number of complaints received in the first half of 2014, the following five financial services companies received the most:

•    Barclays Bank Plc – 278,426 (a decrease of 10% since the second half of 2013)
•    Bank of Scotland Plc – 265,640 (an increase of 46% since the second half of 2013)
•    Lloyds Bank Plc – 264,115 (an increase of 3% since the second half of 2013)
•    National Westminster Bank Plc – 140,342 (a decrease of 20% since the second half of 2013)
•    Santander UK Plc – 135,611 (a decrease of 13% since the second half of 2013)

The majority of complaints related to mis-sold PPI (52%), which was no surprise considering the huge volume of complaints relating to this product which have been made in recent years. The other areas which led to complaints were current accounts, general insurance,
credit cards and savings (including cash ISA’s and other banking).

In a surprise, Bank of Scotland Plc complaints rose 46%.

For more information about any of the above or for practical advice on this or any other aspect of banking and financial disputes, please contact
Olivia Baden of the Berg Banking Litigation Team on 0161 829 2599 or email her at
Oliviab@berg.co.uk

(The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Berg or any of its partners or employees. Professional legal advice should
be obtained before taking, or refraining from taking, any action as a result of this article.) 

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